Glossary
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A recession is a period of significant decline in economic activity. Although the exact definition varies, many experts consider a recession to be two consecutive quarters of decline in gross domestic product (GDP). As such, the market may experience major plunges and volatility over several months.
A Roth IRA is a type of individual retirement account. When you have a Roth IRA, you contribute after-tax dollars — up to a certain limit every year. That money stays in your retirement investment account and can potentially earn investment returns as you work your way toward retirement.
Retained earnings are the money that a business holds onto after the process of shareholder distributions. Retained earnings are important because they can fuel business stability and growth. Without retained earnings, the business may not have the funds it needs to invest in the future.
RMDs are an annual amount retirees are required to withdraw from their tax-deferred accounts after reaching a certain age.